Pilgrim Proposes Fund Mergers

Pilgrim Mutual Funds of Phoenix, Ariz. plans to merge a handful of funds with overlapping investment objectives as a result of ReliaStar Financial Corp.'s recent purchase of Pilgrim Capital Corp., also of Phoenix.

Pilgrim has proposed merging Pilgrim High Yield Fund III into Pilgrim High Yield Fund II; Pilgrim Government Sercurities Fund into Pilgrim Government Securities Income Fund; and Pilgrim Income & Growth Fund and Pilgrim Balance Sheet Opportunities Fund into Pilgrim Balance Fund. The proposals were outlined in proxy statements the funds filed with the SEC Dec. 21.